Conifex Timber Inc. reported results for the Q3 ended September 30, 2023. EBITDA was negative $6.7 million for the quarter compared to EBITDA of $4.2 million in the Q3 2022. The Q3 results were favourably impacted by $1.7 million in recoveries of duty deposit overpayments which were more than offset by $2.4 million in further inventory write-downs that were taken in response to lower lumber prices and after disposing of a logging camp that was lost in a wildfire this summer for $0.6 million.
Net loss was $8.0 million or $0.20 per share for the Q3 2023 versus net income of $0.9 million or $0.02 per share in the year-earlier quarter. The results reflect reduced operating earnings on lower lumber prices.
During the Q3 2023, Conifex Timber incurred a net loss of $8.0 million or $0.20 per share compared to a net loss of $9.2 million or $0.23 per share in the previous quarter and net income of $0.9 million or $0.02 per share in the Q3 2022.
Lumber production in the Q3 2023 totalled approximately 48.9 million board feet, representing operating rates of approximately 80% of annualized capacity. Lumber production of 32.5 million board feet of lumber in the previous quarter reflected 20 days of unscheduled downtime to address low reservoir levels forecasted in the Williston Reservoir and an overall reduced demand for lumber amid challenging economic conditions. Lumber production in the Q3 2022 was 39.5 million board feet or approximately 66% of annualized capacity, primarily due to the Mackenzie Mill running on a single shift basis for the last month of the quarter.
Revenues from lumber products were $27.4 million in the Q3 2023 representing an increase of 38% from the previous quarter and a decrease of 30% from the Q3 2022. Compared to the previous quarter, higher shipment volumes and mill net realizations on higher lumber market prices contributed to the higher revenue. The revenue decrease in the current quarter over the same period in the prior year was largely the result of both weaker benchmark lumber prices and decreased lumber shipments.
Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution.
